The Central Bank of Argentina (BCRA) revoked, through Communication A6037, the rules that were still in force on foreign exchange clamp. Likewise, it issued new regulations with the aim of relaxing the exchange market by getting rid of bureaucratic requirements and reducing operating costs for all players.
Under the new regulation individuals conducting exchange transactions are discharged from the obligation to produce supporting documentation. From now on exchange transactions in banks and foreign exchange houses are processed automatically. Therefore, Individuals will only be required to state under sworn statement the use of the funds (wealth accumulation, foreign trade, etc.), among other basic data. Monthly transaction ceilings are also revoked. However, the provisions on the limit to the use of cash, which fall under the scope of the anti-laundering policy, remain in force.
Hence, the reasons for conducting foreign exchange transactions through channels other than the Free and Single Foreign Exchange Market (such as “grey market dollars”) have vanished, making the market truly free and single. As a result, foreign exchange statistics will be strengthened. In addition, the list of reasons for buying or selling foreign currency will go from 315 items (many of them linked to specific regulations on foreign exchange control) down to about 70 crystal clear items. This criterion goes hand in hand with the Group of 20 (G-20) standards on this subject.
Online banking and exchange houses may freely choose their opening hours.
The regulatory change implemented also revoked Communication A4805, which limited international derivative transactions and prevented many companies, especially SMEs, from getting risk coverage. In the case of financial institutions’ transactions, specific requirements are established in line with the criteria applied by the Organization for Economic Co-operation and Development (OECD) and the G-20.
The BCRA promotes these changes being certain that de-bureaucratization of the exchange market—one of the essential pillars of its management—will help develop the financial sector, thus facilitating all productive activities linked in one way or another to international markets.
August 8th, 2016